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Learn the different types of companies as explained by our company law experts
- Statutory companies
- Royal chartered companies
- Companies limited by shares
- Incorporated or registered companies
- Unlimited companies
- Companies limited by guarantee
- Private companies
- Public company
- Sole proprietorship
Our company law homework helpers further divide these companies into the following categories:
- Mode of incorporation: A company falls under this category if it is created by a special order, special act, or registered like a normal company. This classification therefore covers royal chartered companies (created by a special order), statutory companies (created by a special act), and incorporated or registered companies (created through an act of government and issued with a certificate of incorporation).
- Number of members: Under this category are public limited companies, private limited companies, and sole proprietorship companies. In a public limited company, shares can be traded or sold to the public. The liability of shareholders is limited. A private company has between 2 and 50 members. Their liability can be either limited or unlimited based on the company type. In a sole proprietorship company (one person company), the owner has limited liability, which means that in the event the company is liquidated, his/her personal assets will not be at risk.
- Liability of members: Our company law project help experts argue that for companies that fall under this category, liquidation is paid by the company members. They can pay from the face value of the shares they hold or from their personal assets. The types of companies covered here include companies limited by shares (where shareholders cover liquidation with the face value of the shares they hold), companies limited by guarantee (where shareholders promise to cover liquidation with a certain fixed amount of money) and unlimited companies (where liquidation is covered from the shareholders personal assets).
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